22 June 2018

NIFTY WEEKLY PREDICTION & CHART FOR 25 JUNE TO 29 JUNE 18

WEEKLY RESISTANCE FOR NIFTY:10900,10950, 11000
 PIVOT POINT: 10725
WEEKLY SUPPORT FOR NIFTY :  10630,10600,10525


















DAILY RESISTANCE FOR NIFTY: 10875,10930,10970
PIVOT POINT:10700
DAILY SUPPORT FOR NIFTY :  10675,10650,10625
A see–saw week for nifty has ended on a positive note. Nifty closes the week on a positive note though fails to add any gain on weekly basis. It was a week of consolidation as Nifty was well within a range that has been in place for a second consecutive week. Despite the gains from heavyweights like Financials, Pharma, and Pvt. banks along with some muted gains from Energy space it was the laggards that capped the upside given the fact that they continue to post gains on the back of sector rotation. The nifty has opened the week at 10830 made a high of 10837 and low of 10701 and finally closed the week at 10821 up by 4 points. Nifty is well supported at lower levels of 10650-10700. We have seen the base building before at crucial level of 10400 which was being sustained for almost a week to pull up for next rally. We have previously recommended creating long above 10800 and reiterate the same since recent consolidation will pave the way for bulls towards the higher target of 10950 - 11000.
NIFTY FOR THE NEXT WEEK
As we step into the coming week, we will also face expiry of the current derivative series. All eyes are on the OPEC meet as we await the decision though some key developments may have been priced in the markets since Iran has been reluctant to participate in easing supply while it also pointed to unanimity in OPEC meet which is bearish sentiment for crude. Trade war fears have been there and may continue to make a space in the sentiments of markets. That being said, Markets have now adjusted to developments of Trade war and it is now not seen as a risk on market but basically on sectors that are directly affected by it. Metals is something which is affected very much by it and should be avoided for short term. Speaking on broad terms, with the Nifty forming a lower top after 11,100 levels at 10900 , we still rule below this area. There is all likelihood of volatility refusing to go away and we will see the markets trading in a bit wider range with good amount of volatility ingrained in the sessions to come. The resistance points for the coming week are expected to come in at 10895 and 10950. Supports are expected to come in at 10650 and 10575 zone.
NIFTY: A STRONG SUPPORT WILL BE @ 10675; STRONG RESISTANCE LEVEL SEEN @10950
Overall, in any given scenario wherein the Nifty might see the continuation of the pullback, the upsides are likely to remain capped from now on in the 10895 -10950 mark. Once the Nifty approaches these levels, we will have to deal with that formation with a great amount of caution. We expect that the Nifty might continue to move up, but at the same time might encounter profit taking at higher levels as well. We now recommend protecting positions at each higher level. The coming week and weeks after that will give rewards much on the basis of effective stock selection and sector rotation that will be done. Pattern analysis showed Nifty continues to be in a broad symmetrical triangle pattern and remains susceptible to resistance coming in from the falling trend line that which joins subsequent lower tops from 11150 level. In the next week Nifty is likely to see the 10895 and 10950 levels play out as important resistance while support would come in at 10675 and 10600. 
TECHNICALLY SPEAKING.
The index formed a bullish kind of a candlestick pattern on daily charts, and long lower shadows on the weekly basis. The weekly RSI stood at 60.86 levels in the weekly chart while 57.55 on daily chart indicating no divergence against price while MACD indicated bullish trend as it traded above Signal Line. While having a look at pattern analysis, the Nifty continues to remain in the 27-month long upward rising channel. Also, the Moving Averages remain in order, with each smaller one trading above the larger. It remains to be noted that with the RSI remaining neutral, it too has formed a lower top for itself, as evident from the charts. 

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